NECESSITY,
FUNCTION, AND CONFORMITY: KRS 281.600 enables the Transportation Cabinet to
establish reasonable requirements in order to maintain adequate service of
transportation. This administrative regulation provides for the rules and
administrative regulations for the presentation and handling of loss and damage
claims.

Section 1.
Claims for Loss or Damage. (1) Acknowledgment of claims. Every regular or
irregular route common carrier which receives a written claim for loss of or
damage to property transported by it shall acknowledge receipt of such claim in
writing to the claimant within thirty (30) days after its receipt by the
carrier or the carrier's agent. The carrier shall, at the time such claim is
received, cause the date of receipt to be recorded on the claim.

(2) Handling
by carrier. Every such carrier which receives a written claim for loss or
damage to property transported by it shall pay, decline, or make a firm
compromise settlement offered in writing to the claimant within 120 days after
receipt of the claim by the carrier or its agent; provided, that, if for
reasons beyond the control of the carrier the claim cannot be processed and
disposed of within 120 days after the receipt thereof, the carrier shall have
advised the claimant in writing of the status of the claim and the reasons for
the delay in making final disposition thereof.

(3) Register
of loss and damage claims. Every common carrier shall maintain the necessary
files showing for each cargo loss and damage claim received, the name of
claimant, date, claim number, and amount of claim; date claim was paid; total
amount paid; or date claim was disallowed and reasons. (DMT-9; 1 Ky.R. 788;
eff. 5-14-75.)